Producers’ mindset needs to change
Storage logistics have never been more challenging, playing to oil traders’ strengths. Pure producers’ structural lack of patience may only assists them
Oil trading companies’ mastery of storage economics in a contango market—where future, so-called ‘curve’, prices are higher than the immediate physical market—bears comparison to investment banks. Just like M&A activity, IPOs and other relatively low-risk banking functions, storage plays are seemingly simple. Work out the cost of storing oil and, when the price difference between prompt and curve exceeds that cost, buy the barrels, pay for the storage, sell the volumes in the futures market and pocket the difference. But, in practice, it is much more complicated. For example, management of physical oil pricing based on Dated Brent using contracts for difference (CFDs), exchange of futur
Also in this section
18 February 2026
With Texas LNG approaching financial close, Alaska LNG advancing towards a phased buildout and Magnolia LNG positioned for future optionality, Glenfarne CEO Brendan Duval says the coming year will demonstrate how the company’s more focused, owner-operator approach is reshaping LNG infrastructure development in the North America
18 February 2026
The global gas industry is no longer on the backfoot, hesitantly justifying the value of its product, but has greater confidence in gas remaining a core part of the global energy mix for decades
18 February 2026
With marketable supply unlikely to grow significantly and limited scope for pipeline imports, Brazil is expected to continue relying on LNG to cover supply shortfalls, Ieda Gomes, senior adviser of Brazilian thinktank FGV Energia,
tells Petroleum Economist
17 February 2026
The 25th WPC Energy Congress, taking place in Riyadh, Saudi Arabia from 26–30 April 2026, will bring together leaders from the political, industrial, financial and technology sectors under the unifying theme “Pathways to an Energy Future for All”
